Regardless of threats from the president of the US, Donald Trump, Margrethe Vestager, is in full support of the UK’s government plans for digital tax. Margrethe is the leading tech regulator and competition commissioner of the European Union. According to Margrethe, national digital taxes would help promote the odds of international unity. She added that in 2020, she would rekindle plans for a digital tax system. In an interview with European newspapers, Margrethe claimed that keeping the spirit of fighting for digital tax is of great significance. She added that digital taxing would help bring up equality and fight injustices. According to her, the majority of entrepreneurs and other people escape paying taxes creating unfairness with people who pay taxes.
Margrethe throws all her weight on EU member countries in support of digital taxes. Sajid Javid, the UK Chancellor, last week at Davos, claimed that he would ensure that digital taxing on tech companies, Google, Amazon, and Facebook. It led to a burst up in the US, with the US threatening to put tariffs on British car exports. Donald Trump also threatened to impose taxes on France exports, that is, handbags, Roquefort cheese, and champagne if France endorsed the digital taxing. The threats made France take a rain check on the tax strategy for one year for them to come up with a solution. However, according to the Economy Minister Bruno Le Maire, France is yet and will not back down from the US threats. And will ensure that they pay taxes through the French charge or OECD deal.
Margrethe claimed that the EU commission would give support to each member state supporting the digital tax. Besides that, she added that states should not give in or fear the US government as the EU has full power over the digital tax plan.
However, states such as Denmark, Sweden, and Ireland are yet to give in to the digital tax plan. Such circumstances may pose a threat to the EU as the tax law can become a law if all states are in complete accord. Adjusting artificial intelligence is the other challenge facing the EU. Reports claim that the EU will clamp down facial recognition systems in public areas and facilities. According to Margrethe, AI should assist in improving health conditions and solving pollution problems by not putting citizens’ lives at risk. Nevertheless, Margrethe will take a dying interest in trade talks with the UK ensuring their equality between British firms and EU firms.
Dil Bole Oberoi
